The rise of the gig economy and its implications for HR
The gig economy, also known as the on-demand economy, consists of a labor market where short-term contracts and freelance work prevail. With the advent of technology and the increasing availability of online platforms. The gig economy has seen a massive rise in recent years. In India, the gig economy has become increasingly popular, with more and more professionals choosing to work freelance or take on short-term contracts.
The Rise of the Gig Economy in India
Technological advancements have facilitated the rise of the gig economy in India. The increasing availability of online platforms has made it easier for workers to find freelance work and short-term contracts. Platforms such as Upwork, Freelancer, and Fiverr have become increasingly popular in India.
Increasing Need for Specialized Skills
An increasing need for specialized skills has also fueled the gig economy. As businesses become more specialized and technology-driven, there is an increasing demand for workers with specific skill sets. The gig economy provides a platform for workers with specialized skills to find work and make a living.
Implications for HR Management in India
Flexible Work Policies
To attract gig workers, companies in India need to develop flexible work policies. This includes offering flexible working hours, remote work options, and the ability to work on short-term projects.
Compensation and Benefits
Compensation and benefits are also important considerations for HR managers in the gig economy. Companies need to develop compensation and benefits packages that are attractive to gig workers while still aligning with the company’s overall compensation strategy.
Let’s have a look at the data:
According to a report by KPMG, the gig economy in India is expected to grow at a CAGR of 17% between 2020 and 2025. The report also states that the gig economy is expected to contribute $455 billion to India’s GDP by 2025.
Another report by PayPal shows that 41% of Indian freelancers are aged between 18 and 25 years, and 36% are between the ages of 26 and 35 years.
NITI Aayog estimates India has 7.7 million gig workers, which it expects will swell to 23.5 million by 2029-30. Apart from ushering in billions of dollars of capital and solving complex problems innovatively, Indian start-ups have another claim to fame the creation of a new kind of gig economy.
At present, about 47% of the gig work is in medium-skilled jobs, about 22% in high skilled, and about 31% in low-skilled jobs. These figures clearly indicate the importance of the gig working community in the Indian economy.
The rise of the gig economy in India has significant implications for HR management. Companies in India need to adapt to this changing labor market and develop strategies to attract and retain gig workers. The gig economy provides an opportunity for workers to take control of their careers and work on their own terms.
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